Canada Goose’s shares rose by 16% following the company’s fiscal fourth quarter earnings report, which also included a forecast for year-over-year sales growth in fiscal year 2025. Earnings per share were reported at 5 Canadian cents, falling short of estimated 7 Canadian cents, while revenue was CA$358 million (US$263 million), exceeding the expected CA$315.5 million (US$232 million) from LSEG. Revenue increased by 22% from the same period the previous year.
Neil Bowden, Canada Goose’s chief financial officer, highlighted that store comparisons were relatively flat, but the year-over-year sales growth was led by Greater China, which saw a 29.7% increase. The Asia-Pacific region excluding Greater China also experienced growth of 29.1%, while North American sales increased by 24.5%. The growth was supported by domestic shopping in the Chinese mainland, as well as mainland Chinese tourists driving growth in Hong Kong and Macao. Online and in-store sales were boosted by the company’s Lunar New Year marketing campaign and a longer peak selling period.
Looking ahead, the CFO anticipates mid-single-digit revenue growth, driven by advancements in the direct-to-consumer business. He also expects comparable store sales to increase in the low single digits. The company’s performance over the past three months in China and Asia Pacific aligns with expectations for mid-single-digit growth in the luxury business. However, North America has faced more pressure in terms of performance. In March, Canada Goose announced a 17% reduction in its corporate workforce, which resulted in approximately 20 million Canadian dollars in productivity improvements and cost savings for the fiscal fourth quarter.
The company’s strong performance in the fourth quarter was attributed to robust sales growth in Greater China and the broader Asia-Pacific region. This growth was supported by a combination of domestic shopping in the Chinese mainland and increased tourism from mainland Chinese visitors in Hong Kong and Macao. The Lunar New Year marketing campaign and an extended peak selling period also contributed to the positive results. Moving forward, Canada Goose is expecting mid-single-digit revenue growth, with a focus on the direct-to-consumer business.
Despite challenges in North America, Canada Goose remains optimistic about its growth prospects, particularly in the Chinese and Asian markets. The company’s strategic measures, including the reduction in its corporate workforce, have yielded positive results in terms of productivity improvements and cost savings. Canada Goose is confident in its ability to navigate the changing landscape of the luxury business and capitalize on opportunities for growth in the coming fiscal year.
